[Featured Stock] Easywellfare Rises on Expectations of Online Payment Benefits Due to COVID-19
[Asia Economy Reporter Yoo Hyun-seok] Easywellfare is showing strong performance. It appears that securities firms' analysis, which suggests that the encouragement of welfare point usage by public officials due to the novel coronavirus disease (COVID-19) will have an impact, influenced this trend.
As of 9:55 AM on the 3rd, Easywellfare was trading at 10,150 KRW, up 8.67% (810 KRW) compared to the previous trading day.
Easywellfare is a private operator entrusted with managing welfare points. About half of its clients are government agencies, local governments, and public institutions, holding a 49% market share in the welfare points market. Researcher Lee Jaeyoung of Research Al-eum explained, "The scale of welfare points for public officials is expected to expand by 11.9% from the previous year to 1.5 trillion KRW this year," adding, "Among private operators entrusted with managing domestic public official welfare points, Easywellfare holds the top position with a market share (M/S) of 49%." He further stated, "Especially this year, to stimulate the domestic economy weakened by COVID-19, the use of welfare points by central and local government public officials is being encouraged, which is expected to exceed the market consensus (earnings forecast) in the first half."
He also positively evaluated the continuous expansion of the online payment ratio. He analyzed, "Transaction fees generated through online platforms have higher profit margins compared to offline fees, which is expected to improve profitability."
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Researcher Lee also noted, "Attention will also increase regarding the actions of the third largest shareholder," analyzing, "The third largest shareholder (Scion Asset Management), who changed the purpose of shareholding to management participation, additionally purchased 180,000 shares on the 26th of last month." He added, "An increase in the largest shareholder’s stake and share buybacks to defend management rights are also anticipated."
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